Lebanon Begins Oil and Gas Exploration

  • 5/29/2018
  • 00:00
  • 12
  • 0
  • 0
news-picture

Lebanon kicked off on Tuesday its first exploration of offshore oil and gas reserves. Energy and Water Minister Cesar Abi Khalil said in a televised statement that exploration started after authorities gave the go ahead on Monday. Earlier this year, authorities had approved an exploration plan submitted by a consortium of Frances Total, Italys Eni and Russias Novatek. Lebanon hoped to launch a second offshore licensing round by the end of 2018 or early 2019, Abi Khalil said. In February Beirut signed its first offshore oil and gas exploration and production agreements with the Total-Eni-Novatek consortium for offshore Blocks 4 and 9. Part of Block 9 contains waters disputed with neighboring Israel but the consortium has said it has no plans to drill in the disputed area. Abi Khalil said exploration of the two blocks would last up to three years and the first well is expected to be drilled in 2019, providing all government departments grant necessary licenses and permissions "on time and without delay". Until drilling begins Lebanon will not know what reserves lie in its waters. Abi Khalil said exploratory wells will be dug in the areas with the highest probability of commercially viable discoveries based on seismic studies. Lebanon has an unresolved maritime border dispute with Israel over a triangular area of sea of around 860 sq km (330 square miles) that extends along the edge of three of its total 10 blocks. The agreement in February on offshore exploration drew sharp criticism from Israel, escalating tensions Lebanon, which have since eased. Lebanon is on the Levant Basin in the eastern Mediterranean where a number of big sub-sea gas fields have been discovered since 2009. Potential reserves could be used domestically or exported. Both are attractive for Lebanon which has been short of electricity since its 1975-90 civil war and has an anemic economy battered by war in neighboring Syria and political tensions. It is also hoped the developing oil and gas industry will create jobs and economic growth. But the commercial viability of potential reserves depends on energy market prices, the ability to secure customers and the cost and politics of building export infrastructure.

مشاركة :